Texas sales tax

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new182

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new182
Texas sales tax (Part 2)

I just received a letter that I may owe sales tax on the 182 I bought.
The letter states that I may be exempt if it was a casual sale ( the seller had not sold more than 2 planes in the past 12 months).
That is the case.
The letter says that a statement detailing the casual sales must be sent in, signed by the seller.
Does anyone have a sample of how to word the casual sale statement?

Part 2:
After getting the casual sale statement and reading the letter again from the state I called the taxing authority, told them I had the statement from the seller stating that it was a casual sale, and asked them how to proceed.
They said that I could file the statement away and that if they ever called for it I could send it in then. They may or may not ever call for it.
The kicker is that, if they call for it and find out that it did not qualify as a casual sale, then I would owe the tax and a penalty!
I can send it in now and have it "verified" as to whether or not it qualifies as a casual sale.
What to do, what to do???
 
Last edited:
Catmandu,
Thanks!
I did google and I had read page after page but I did not hit on this form.
Thanks again.
Mike

PS: Mods, I should have posted this in Hangar talk rather than here.
 
No problem. When searching for letters or forms I 'tweak' my search by adding 'pdf' or 'txt' or 'doc' to the end of the search terms. In this case, the above form was the second option when I googled 'texas casual sale pdf'.

Now if I can just get that smart about my new Droid 3 . . . off to Google! :rolleyes:
 
catmandu said:
No problem. When searching for letters or forms I 'tweak' my search by adding 'pdf' or 'txt' or 'doc' to the end of the search terms. In this case, the above form was the second option when I googled 'texas casual sale pdf'.

Now if I can just get that smart about my new Droid 3 . . . off to Google! :rolleyes:
Click to expand...

And it would have been NUMBER ONE in the list if you'd googled this:

texas casual sale filetype:pdf

For a full list of the powerful search operators you can use on Google, check out this guide:

http://www.googleguide.com/advanced_operators.html
 
Several of us at my airport received one of these a couple years ago. It seems they do some sort of audit and are a couple years behind. It should be very straight forward if you are in contact with the seller and it was in fact a casual sale.

Since our plane is in an LLC, they wanted a letter from our CPA stating it wasn't being used for business.

Best,

Dave
 
As a reminder for anyone who stumbles across this thread - if you are in Texas, when you buy an aircraft, you should (1) determine whether the seller is a casual seller (read the state's materials); (2) make sure that neither you nor the seller hold a sales tax permit (either will make the tax automatic); and (3) GET THE FORM EXECUTED BY THE SELLER!

You don't file the form with anyone - you just hang on to it, in case (like Dave notes) they decide to come after you for the tax. I have had to litigate over this before, including a client from whom the state wanted sales tax for a 414 he had merely transferred from his personal name, into a holding corporation he owned (a "transfer of convenience," also not taxable). When it became clear that there was no tax owed on that transfer, they started trying to go after the original purchase, documentation of which was hard to get after the passage of significant time.
 
thanks to all!
The search tips are great!
I will contact my seller and get the form completed.
thanks again.
mike
 
A lot of states and municiplaities are going into old FAA records looking for aircraft to get past due sales tax and personal proprty taxes.

Times are tough, and the taxman commeth.
Know the rules before you buy.
 
What is the practical statute of limits for sales tax, in Texas? (how far could the state or other taxing entity reasonably expected to look back?)
 
There was a fella here at Addison they went back five years on Dave. Spike will have to address what's legal.

Best,

Dave
 
Let'sgoflying! said:
What is the practical statute of limits for sales tax, in Texas? (how far could the state or other taxing entity reasonably expected to look back?)
Click to expand...

Dave Siciliano said:
There was a fella here at Addison they went back five years on Dave. Spike will have to address what's legal.

Best,

Dave
Click to expand...

Spike has not a clue - but says, and I quote, "I'll find out."
 
How about someone using the plane expenses as a fed tax deduction...while in a personal name and wasn't subject to state tax at purchase time?:confused::yikes:
 
Dave: Taking a business trip and taking the mileage deduction like you would in a personal vehicle was different to my accountant than a company plane that was primarily used for business purposes and not depreciated. Just like a personal car occasionally used for business isn't a business vehicle. I deduct a portion of trips where I conduct business. It' less than 50% of my use and less than that for my partner. Most trips, I don't deduct anything.

Best,

Dave
 
Let'sgoflying! said:
How about someone using the plane expenses as a fed tax deduction...while in a personal name and wasn't subject to state tax at purchase time?:confused::yikes:
Click to expand...

Anytime you start using a plane for business you should strongly consider talking to an expert- there are too many variables and it can get very expensive very quickly. Despite doing a lot of research for my recent acquisition, I wouldn't express an opinion.

Be aware that if you start using the plane in your business your plane may be subject to business personal property taxes. Check with your county to see what rate applies.
 
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